• What is superannuation?

  • Superannuation is a long-term savings and investment plan designed specifically to help you build up the finances you will need to live the life you want in retirement.

    Australia’s retirement savings system is essentially comprised of three elements:

    • The government age pension, or main element, which is supplemented by
    • Compulsory superannuation contributions paid by employers and
    • Voluntary superannuation contributions paid by workers.

    Your Australian Catholic Superannuation account can consist of a combination of compulsory and voluntary or salary sacrifice contributions, and in some cases government co-contributions.

    Australian Catholic Superannuation and you:

    • The balance of your super account is invested in different assets such as shares, fixed interest and cash.
    • Positive investment returns are added to your account balance.
    • Negative investment returns are deducted from the balance.
    • When you retire you can take your account balance as a lump sum or you can convert it into an income stream called an allocated pension.

    To encourage you to save through superannuation, the Australian Government provides generous tax concessions. Visit our Tax & superannuation section for an overview of some of the tax savings that are available.

  • Employer contributions

    If you are aged between 18 and 69 (inclusive) and your income exceeds $450 a month, your employer must contribute 9.5% of your ‘ordinary time earnings’ into your superannuation fund. This minimum contribution is called a Superannuation Guarantee (SG) contribution. Some employers may choose to pay more than this minimum amount.

    Employers are not required to pay SG contributions on any part of your earnings above a certain amount (called the maximum contributions base). More details are available at the Australian Taxation Office site.

    In addition to compulsory SG contributions, you may be able to have your employer make additional salary sacrifice contributions, instead of it being treated as taxable income.

    Employee contributions

    You may choose to allocate an extra percentage of your after-tax income as a voluntary contribution. These contributions can be made directly from your after-tax salary to the Fund, or you can ask your employer to deduct them from your pay and send them with their SG contributions.

    After tax contributions – claiming a tax deduction

    From 1 July 2017, you may be able to claim a tax deduction on after tax contributions you make to super. For more information refer to Can I make a tax deduction on my after-tax contributions?

    Self-employed contributions

    If you are self-employed, you may be able to claim a tax deduction for your superannuation contributions. If you need more information, check with your accountant or tax agent, or give Australian Catholic Superannuation a call on 1300 658 776.

  • Other sources of retirement income

    The government age pension and superannuation are only two possible sources of retirement income. Many retired Australians supplement their income with the earnings from assets such as shares, investment properties, or term deposits for their retirement income.

    There are many factors to consider when it comes to planning for your future. Combining the age pension with other retirement assets can be complicated, but our financial planning services can help you to easily and effectively maximise your retirement income.

  • Temporary residents

    Superannuation tax concessions are meant to help Australian residents provide for their retirement. Although temporary residents can contribute to superannuation while in Australia, special rules apply as to when they can take their super benefits and to the tax charged on those benefits.